Strategic Initiative Paper

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Date Submitted: 08/29/2011 07:27 PM

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PepsiCo’s Strategic Initiative

Maria del C. Perez

Finance for Business/370, University of Phoenix`

Strategic Initiative Planning

PepsiCo has a successful strategic initiative plan they have taken with their healthy beverage and snack product lines. The company has initiated an expansion into continuously growing healthy consumer market. Paying attention and acting fast on the “healthy” market has taken it ahead of its competitors, especially Cocoa-Cola. PepsiCo is a well managed company with strong sales in a large market that is both diverse and worldwide, making it a good investment. PepsiCo is persistent with trying new ideas as well as succeeding in penetrating new markets such as SoBe Lifewater, which is vitamin-enhanced water with a high level of antioxidants (PepsiCo, 2010). PepsiCo is not losing market share to their competitors, which allows PepsiCo to become a safe venture. PepsiCo’s products will always be in demand even during a declining economy. Team D will show how PepsiCo’s financial planning is affected by the initiative including how this affects sales and costs.

Strategic Planning

The PepsiCo organization has focused on several initiatives in order to cope with today’s economy. The aspects of the business focusing on the business performance and some initiatives dealing with all aspects of the business were put together by Indra Nooyi, the company’s CEO. PepsiCo is focused on achieving business and financial success around the world. They provide work for more than 185,000 employees and have revenues of over 39 billion (PepsiCo, 2010). Using the performance with a purpose concept the company looks to focus on sustainability from three different aspects that are human sustainability, environmental sustainability and talent sustainability.

In 2009, after acquiring 80% of their bottling companies, PepsiCo, reinvented their current strategic planning initiative called ‘The Power of One’, unlocking a...